The National Restaurant Association of India (NRAI) has highlighted the critical role of the restaurant industry in driving India’s economy, contributing Rs 5.69 lakh crore annually and employing 8.5 million people. With projections from the NRAI India Food Services Report 2024 estimating a growth to Rs 7.76 lakh crore by 2028, the sector is poised to become the third-largest food services market globally.
Despite its significant contributions to GDP and employment, the industry faces challenges such as rising costs, complex regulations, and limited operating hours. To address these issues, the NRAI has proposed a series of recommendations to the government for the upcoming budget, including restoring GST Input Tax Credit, reducing GST on eco-friendly materials, and creating a dedicated Food Services Ministry. Other recommendations are as follows:
Sagar Daryani, President of NRAI, emphasised the need for balanced policies to unlock the sector's growth potential. He stated, “The food services industry is critical to India's economy, providing significant revenue to the government, employment, and consumption. Despite its potential, the sector faces challenges which restrict its growth and expansion. To address these challenges, timely support and reforms are required. Balanced and fair policies will not only unlock the industry's maximum potential but will also ensure long-term growth, benefiting millions of employees, consumers, and businesses while reinforcing its position as a key economic driver.”
He added, “I hope that the Hon’ble Finance Minister will consider our request favourably for boosting growth of the industry. I believe that our suggestions for a dedicated Ministry/Department for the Restaurant Industry could be a game-changer, and will lead to an exponential growth of the sector.”
The NRAI remains hopeful that the government will act on these recommendations, fostering a more sustainable and thriving restaurant industry while benefiting employees, consumers, and businesses alike.
